According to the latest data in the report published by Moody’s Investors Service, charge-offs to credit cards have substantially increased over the past 8 years, attributing the trend to the loose loan provision conditions. The highest rate of debt write-off comes on Synchrony Financial, which is 5.4% as compared to 4.84% last year. It was followed by Capital One that recorded 5.31%, up from 4.23% in 2016, and First National Bank with 4.21% compared to 3.5% rate a year ago.

Moody’s believes that the growth of the charge-off rate registered for largest lenders in the country results from the fact that despite unpaid debts the financial institutions still remain profitable as debts bring large revenues.

Meantime Moody’s stopped short of neglecting the underwriting quality decrease, noting that after the economy slowdown charge-offs were strongly avoided by the companies in view of higher underwriting policies and recovering economy. As current economic status is steady and stable, underwriting no longer needs to be as high as before.

Besides, last month TransUnion credit bureau reported that the number of lenders providing loans to consumers with the below-average credit score is growing too, thus marking the drop in the borrower’s credit history standards.

And yet the increased figures in charge-offs do not give rise to concerns as they still remain below the peak rates registered at the time of economic recession and crisis.